Jordan’s Green Industrial Transition: What role can green finance play?

Organisation:
Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Frankfurt School of Finance & Management

The industrial sector in Jordan has rebounded from the negative effects of the COVID-19 pandemic, but is facing increased costs of production due to supply chain disruptions and rising energy and commodity prices. This creates incentives for businesses to adapt to more resource-efficient and environmentally friendly production methods to decrease costs and reduce negative environmental impacts. 

This report provides an understanding of how green investments by the industrial sector in Jordan may be increased by an expanded supply of and demand for green finance and improved access, as well as supporting the development of the green finance ecosystem through building an understanding of some of the barriers on both sides of the market for green finance and recommendations to address the identified barriers.

The study was initiated with research into the market context of Jordan, with overviews of the financial and industrial sectors, available green financing products, as well as the backdrop formed by green financial and industrial policies.

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